FTX Token (FTX) just broke above a major consolidation pattern; could this be the signal that brings back longer-term players to the uptrend?
New Leg Higher in FTX Token (FTT) Ahead?
Today we’re checking out a potential longer-term bullish setup in FTT/USD. FTT is the native utility token of the FTX exchange, one of the world’s leading crypto spot and derivatives exchanges doing over $25B in turnover every day.
What makes FTX unique is that it was built for serious traders in mind with institutional level speed, security and other features like cross-margining. Big and small players alike have a range of markets to trade from, not only spot crypto tokens, but also options, leveraged tokens, prediction markets, and volatility tokens.
The token itself has many uses for FTX exchange users, including discounted trading fees, collateral features, insurance protection from excessive market volatility, and bonus payments to holders if the insurance fund receives excessive funds. There’s also a program where FTX fees are used to buy back tokens and burn, decreasing the total supply overtime.
FTX’s features, growth, tokenomics and incredible marketing push in the U.S. (recent partnerships include NBA’s Miami Heat, Major League Baseball, and esports team TSM) make for a very strong bull case for FTT. And in case you missed it, big institutions are in that camp as we just heard that FTX just raised another $420M from over 60 firms, pushing it’s valuation to $25B.
If you’re in that camp too, then the break above recent consolidation between $50.00 – $60.00 on the daily chart above of FTT/USD is something to watch. This could draw in longer-term players back into FTT and make a run for the all-time highs just under the $85.00 handle, hit back in September. This of course assumes that we won’t see any major macro economic shocks, and/or the current BTC all-time highs euphoria continues to support the broad crypto space.
For the bears, the case for a move lower is tough at the moment, and unless we do see a large shift in global risk sentiment or some regulatory risks take shape to slow FTX down, recent swing lows around the $50 handle will likely be tough to break.
For now, we’re in watch mode to see if this week’s pop FTT/USD fades. If it does pull back to the $60.00 handle and if bullish reversal patterns form in that area, we’ll consider a longer-term long position if the fundamentals and risk environment remains positive.
What do you all think? Is FTT a longer-term buy? Or is this a short-term top for FTT and the rest of the crypto space? Let me know in the comments section below!